OVERVIEW
In the post-pandemic office scene, Metro Manila continues to climb its way back to its best days. Property developers have shifted their focus to introducing certified green buildings which are substantially favored by tenants due their environmentally conscious features and sustainable design. As a result, increased pressure is being felt by older buildings to stay competitively relevant against their newer rivals. Landlords must proactively adapt and invest in strategies that align with these changing priorities to maintain competitiveness in the market. Holistically, combining rental adjustments with improvements in services and sustainability can positively impact the overall appeal of older buildings.
Metro Manila’s office space transactions dropped by 10% QoQ, with a 21% vacancy rate with the exception of the Bay Area which experienced a significant upswing with 33,900 sq m of new transactions. Rental rates across Metro Manila remained stable, with Alabang CBD experiencing a slight decline. Landlords are offering discounts and concessions to attract tenants, but the lack of leasing activity and a strong supply pipeline may prompt flexibility.